Unclaimed Funds From PPF, NSC, SCSS: The market’s most sought-after fixed income instruments are the Public Provident Fund, National Savings Certificate (NSC), and Senior Citizens Savings Scheme (SCSS). These are government-backed small savings plans that offer limited tax benefits.
There are many options for investors, and some forget to mention long maturing accounts. According to government regulations, investors must be informed by the relevant investment authorities about their charges. However, many account holders are not traceable because they have changed addresses or telephone numbers overtime or failed to update them with investment authorities.
After a certain period, these Unclaimed Money are transferred to other government funds. These funds are available to policyholders and account holders.
Unclaimed bank fixed deposits money is transferred to the Depositor Education and Awareness Fund, unclaimed insurance, PPF, and EPF money are moved to Senior Citizen’s Welfare Fund, and unclaimed stocks and mutual funds money is moved into the Investor Education and Protection Fund IEPF.
Senior Citizen’s Welfare Fund – SCWF
SCW fund is a collection of unclaimed deposits from PPF and post office savings accounts. The Welfare Fund was established in 2015 to use unclaimed funds that are not being used for productive causes and the general welfare of society. Insurers contact account holders/nominators after an investment matures or ends.
For example, insurance money not claimed within 10 years of the due date will be transferred to the senior citizen welfare funds. The beneficiaries will be eligible to claim the money from their policies for up to 25 years after the transfer to the Senior Citizen’s Welfare Fund.
If claims are not made within 25 years of transfer to the SCW funds, the unclaimed amounts can be transferred to the Central Government under Section 126 of 2015’s Finance Act. The Ministry of Finance states that funds from the Senior Citizens Welfare Fund are used for senior citizens.
Where can I find information about unclaimed small savings accounts?
Click on “Banking and Remittance” on the India Post website. Select Post Office Savings Scheme. Select Senior Citizen Welfare Fund.
A list of accounts will be displayed, such as Savings Bank and PPF. Once you click on an account type, state-specific account details will appear.
What is the welfare fund?
The welfare fund rules require that every year, an institution, in this case, the post office, must identify any unclaimed funds and deposit them to the Fund no later than March 1st each year.
According to the rule, “The Institutions shall make transfers on a net basis. That is, the unclaimed deposits less the claims accepted in compliance with the law for the time being in the effect of accounts whose balances were transferred to the Fund.”